When to Raise Prices in a Small Business

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Making the decision to raise prices can feel like a plunge into the deep unknown. What will customers say? Will we lose business? The reality is that it’s one small step for your sales, and one giant leap for your small business profits.

So jump on over to my lesson on why, when, and how to raise prices in your small business. I’ll help you look before you leap…

Click to tweet this: Raising prices: one small step for sales, one giant leap for small business @DaveCrenshaw

Transcription:

When is the right time to raise your prices?

Many business owners are timid about this subject. But it’s actually very healthy to raise prices in your business on a regular basis.

First of all, you must keep pace with inflation. On average, a typical economy has an inflation rate of three to four percent. That means if you’re not raising your prices at least three to four percent every year you are losing money.

Second, you need to understand supply and demand. The idea is that people will pay more if there are more people wanting it and there is a shorter supply. A great sign when you need to raise your prices is if you have a waiting list, so keep an eye on that.

Now it’s your turn. Share your tips for raising prices. Put that in the comments section below.

And if you have any questions you’d like me to answer in a future video, ask that below as well.

Thanks for watching. Now go ask for more money.

Join the conversation: Share your tips for raising prices.

I respond to every question and comment. So, please, join the conversation!